You don't think F9 being bankrupt is similar to the ATA deaL? Wishful thinking I'm afraid.
First, ATA didn't cease operations until 3+ years after SWA propped them up. For Frontier guys/gals I hope it will be different but I think SWA just wants the gates and some routes. They could just buy assets out of the bankruptcy.
Funning thing is, if SWA is successful they have to cut Bedford a check for the financing Republic provided Frontier.
Typical Bedford. If he wins, he wins. If he loses, he still wins.
He is going to need the money to stay afloat after his plan falls apart. That money is not going to last too long
He is going to need the money to stay afloat after his plan falls apart. That money is not going to last too long.
If it doent happend, he will have plenty of it!!! thats what Indy319FA was traying to explain!! any way good luck to all involved if it is SW+F9 or RAH+F9, lets hope it doesnt go USAirways stile or a wipsaw!!!
ill be in the regionals like...let see....ah for ever!!!!
I am surprised that SWA offered just 5 million more. I would have imagined the offer would have been sweetened to level that RAH could not counter offer. But, I guess this is just an auction, and 5 million seems to be the incremental bid increase. Look for 118 from RAH shortly, followed by 123 from SWA, etc.
I don't know how much actual interest SWA has in F9, but it certainly benefits SWA to drain the resources of RAH, and raising the cost of F9 through auction is an easy way to do it.
Right now everyone who enters the "auction" only has to bid the same amount SWA did. That amount is the dollar amount RAH offered plus a "payoff" to RAH should the other carrier win. All the payoff fees owed to RAH total right at about that 5 million difference...it's a benefit they have as being the first to come forward with a reorganization plan. The actual auction phase will not happen until August 11th at which time the bids will then go up typical live auction style...which can go up by as little at a time as the bidders wish.
Plus, any carrier that purchases us besides RAH will incur that $40 million payoff as well. So if anyone but RAH wins they owe RAH ~$45 million. Nice payoff to Bedford if he was to lose.
As far as SWA having interest in us. The Dallas Morning News states SWA as saying they are "in this to win it." Now they could be bluffing of course, but i would bet they will probably take the high bid in the auction since they have the most cash to spend to eliminate a fierce competitor in DEN.